Tips for Developing a Newly Started Business

The business development process must be accompanied by careful planning. A 2021 University of Tennessee study found that 25% of businesses fail in the first year. Furthermore, failure increased to 35% in the second year. The failure rate was even higher in the third year, at 44%. This phenomenon causes the number of businesses that are able to survive is quite minimal.

So that you can develop a newly started business safely and in a planned manner, you should pay attention to the following tips:

Make a SWOT Analysis

SWOT analysis is used to describe the important factors that affect the business. The analysis process aims to describe real business conditions and predict various possibilities that have not yet occurred.

When you do a SWOT analysis, you must describe four important things, namely:

Business Strength (Strength)
Business Weaknesses
Opportunity that can be achieved (Opportunity)
Threats that risk disrupting business (Threats)

The SWOT analysis process will make you more familiar with the specific characteristics of the business. So that the risks of business disruption that may occur in the future can be minimized.

Don’t Forget to Do the Risk Management Process

Weaknesses (weaknesses) and threats (threats) business must be addressed in an effective way. After conducting a SWOT analysis, you are then required to carry out a risk management process. Make a list of the risks that may threaten business continuity and how to minimize these risks. In addition, the company can also use the services of a consultant in analyzing the risks that may be present.

One of the threats that is often underestimated and makes businesses negligent is cyber interference. This is because cyber risks are not limited to technology-based companies, but also companies that have made digital transformations and depend on IT (Information Technology) and Operations Technology, such as Health, Media, Educational Institutions, e-Commerce; Every company is advised to be aware of the unavoidable cyber attacks. The Wannacry Ransomware attack on a number of hospitals in Jakarta is a concrete example of a cyber attack that is detrimental and disrupts business activities because it has stolen important, very confidential data. That is why you must prepare cyber threat insurance as a form of anticipating cyber crime from an early age.

Setting Up an Emergency Fund

Business development does not only require adequate capital. Your company is also required to prepare emergency fund reserves to anticipate unexpected things. A business emergency fund will ensure the smooth running of the overall business operational process. As a business professional, you should not mix personal financial matters with business needs. This is because most businesses in the country have gone bankrupt because of the wrong cash flow management. So, don’t let the cash flow error also happen to your business.